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Might SpaceX try to buy Apple’s satellite partner? A new report says Elon Musk’s company is among the potential suitors for Globalstar.
A week after news emerged that Globalstar is considering selling itself, Bloomberg reports that the company has held early talks with SpaceX. However, other companies might also be interested, and it’s possible Globalstar could remain independent, Bloomberg adds, citing unnamed sources.
A merger would shake up the satellite industry, giving SpaceX even more influence, just weeks after Elon Musk's company reached a $17 billion deal to acquire valuable radio spectrum from Boost Mobile's parent, EchoStar.
SpaceX’s cellular Starlink system is currently competing against Globalstar in the fledgling market of supplying satellite connectivity to everyday smartphones. In 2022, Apple kicked things off by enlisting Globalstar to power satellite features on Apple’s latest iPhones. This has included helping users in cellular dead zones to connect to emergency services and to send text messages by tapping the orbiting satellites.
However, starting this year, SpaceX has been offering its own competing service through the cellular Starlink system, which is currently available on T-Mobile's network. Importantly, the cellular Starlink service can deliver more than just text messaging, but also transmit data to mobile apps and power video chats—including Apple apps.
Although Globalstar plans to upgrade the iPhone’s satellite connectivity through a next-generation constellation that promises to boost capabilities, there are signs that Apple could strike a deal with SpaceX. Last week, The Information reported that SpaceX had added “support in its new satellite designs for the same radio spectrum Apple uses for the iPhone’s current satellite features.” Three years earlier, Elon Musk also pitched Apple on using SpaceX as a satellite provider for iPhones, rather than Globalstar.
An Apple deal with Musk would pave the way for iPhones to receive more powerful satellite features over time. SpaceX’s acquisition of EchoStar’s radio spectrum promises to upgrade the cellular Starlink capabilities by 20 times, making it comparable to ground-based LTE service. Musk himself has even entertained the idea of competing with mobile carriers.
Globalstar didn’t immediately respond to a request for comment. Others, such as AT&T and Verizon, have been investing in other companies, including AST SpaceMobile and Skylo, to help them compete with SpaceX in mobile satellite connectivity.